Boeing reported second-quarter revenue of $16,9 billion, a GAAP loss per share of $2,33, and a headline loss per share (non-GAAP)* of $2,90 (Table 1). Operating cash flow was $3,9 billion and free cash flow was $4,3 billion (non-GAAP)*. The results primarily reflect lower volume in commercial delivery and losses in fixed-price defense development programs.
“Despite a challenging quarter, we are making substantial progress in strengthening our quality management system and preparing our company for the future,” said Dave Calhoun, president and CEO of Boeing. “We are executing our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems. While we have more work to do, the steps we are taking will help stabilize our operations and ensure Boeing is the company the world needs it to be. We are making important progress in our recovery and will continue to build trust through action and transparency.”
Operating cash flow was ($3,9) billion in the quarter, reflecting a reduction in commercial deliveries as well as an unfavorable working capital situation (Table 2).
Cash and investments in marketable securities totaled $12,6 billion, compared with $7,5 billion at the beginning of the quarter, driven by the issuance of $10,0 billion of new debt partially offset by the use of free cash flow in the quarter (Table 3). Debt was $57,9 billion, an increase from $47,9 billion at the beginning of the quarter due to the issuance of new debt. The company has access to credit lines worth US$10 billion, which remain undrawn.
The company's total backlog at the end of the quarter was $516 billion.
Results by Segment
Commercial Airplanes
During the quarter, the company submitted its comprehensive safety and quality plan to the Federal Aviation istration (FAA).
The 737 program gradually increased production during the quarter and still plans to increase production to 38 units per month by the end of the year. The 787 program maintains plans to return to 5 units per month by the end of the year. In July, the company announced a deal to acquire Spirit AeroSystems, and the 777X program began FAA certification flight testing after obtaining type inspection authorization.
The segment delivered 92 planes during the quarter and the backcluded more than 5.400 planes valued at $437 billion.
Defense, Space and Security
Revenue for the second quarter of Defense, Space and Security was $6,0 billion. The operating margin for the second quarter of (15,2%) primarily reflects $1 billion in losses on certain fixed-price development programs, including a $391 million loss on the KC-46A program, largely driven by a slowdown in commercial production and supply chain constraints. Losses recorded in the T-7A, VC-25B and Commercial Crew programs reflect higher estimated engineering and manufacturing costs as well as technical challenges.
During the quarter, the segment won a contract for seven U.S. Air Force MH-139A helicopters and delivered the first CH-47F Block II Chinook to the U.S. Army. The Defense, Space and Security backlog was $59 billion, of which 31% represented orders from customers outside the US.
Global Services
Global Services Q4,9 revenue of $17,8 billion and operating margin of XNUMX% reflect higher business volume and mix.
During the quarter, the segment secured a performance-based logistics contract for the U.S. Army Apache and won FliteDeck Pro service contracts with Hainan Airlines and Ryanair.
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With information: Boeing
